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Performance Enhancement Model of Human Resources through Knowledge Sharing
Arizqi
Faculty of Economics, Universitas Islam Sultan Agung, Semarang, Indonesia
Abstract
This study aims to examine the effect of exogenous variable consisting of organizational dimen- sion including organizational learning culture, support from top management, and individu- als namely openness in communication in affecting knowledge sharing of individuals. Besides, this study also examined how the role of knowledge sharing in improving human resource performance at Sharia Banking. This study was conducted through SEM (Structural Equation Modeling) test by using SmartPLS, a statistical software. The study was done through survey method by distributing questionnaire to 145 employees from frontliner departments at three of Sharia banks in Semarang. The findings of this study showed that two organizational di- mensions (Organizational Learning Culture and Top Management Support) have significant effect on the improvement of knowledge sharing. While Openness in Communication, the individual dimension, could not determine the improvement of knowledge sharing. Then, the improvement of human resource performance at sharia banking could be done by improving knowledge sharing.
Info Article History Article:
Received Januari 2017 Approved Februari 2017 Published Maret 2017 Keywords:
Organizational Learning Culture;
Top Management Support; Open- ness in Communication; Knowl- edge Sharing; Work Performance.
Model Peningkatan Kinerja Sumber Daya Manusia Melalui Berbagi Pengetahuan
Abstrak
Penelitian ini bertujuan untuk menguji pengaruh variabel eksogen yang terdiri dari di- mensi organisasi termasuk budaya belajar organisasi, dukungan dari manajemen pun- cak, dan individu yaitu keterbukaan dalam komunikasi dalam mempengaruhi berbagi pengetahuan individu. Selain itu, penelitian ini juga meneliti bagaimana peran knowledge sharing dalam meningkatkan kinerja SDM di Perbankan Syariah. Penelitian ini dilaku- kan melalui uji SEM (Structural Equation Modeling) dengan menggunakan SmartPLS, perangkat lunak statistik. Penelitian dilakukan melalui metode survei dengan menyebar- kan kuesioner kepada 145 karyawan dari departemen lini depan di tiga bank syariah di Semarang. Temuan penelitian ini menunjukkan bahwa dua dimensi organisasi (Or- ganizational Learning Culture dan Top Management Support) berpengaruh signifikan terhadap peningkatan knowledge sharing. Sementara Openness in Communication, dimensi individu, tidak dapat menentukan peningkatan knowledge sharing. Kemudian, peningkatan kinerja SDM di perbankan syariah dapat dilakukan dengan meningkatkan knowledge sharing.
JEL Classification: M3, M31
This Paper is a revised version of a paper presented at the Fourth ASEAN Internasional Conference on Islamic Finance, 6-8 December 2016, Malaysia.
INTRODUCTION
In the era of economic knowledge, kno- wledge based jobs will replace the conventional one (not based on knowledge), due to work de- mand and uncertainty which is getting higher, and complex. In this era, knowledge becomes an important source for economic knowledge ge- neration; this is supported by a statement from Cheng et al. (2009) that knowledge is an impor- tant asset for individuals or organization in order to achieve high performance and competitive advantage. Besides, information in knowledge must be analyzed and followed up accurately so that later it will become references for enterpri- ses or organizations in making decision. Nowa- days, knowledge becomes a key for success and sustainability of enterprises (Aulawi et al., 2009;
Chen & Huang, 2011; Jimenez & Valle, 2013).
Therefore, the implementation of knowledge management is necessary for enterprises.
Many strategies can be applied in an or- ganization to manage their employees’ perfor- mance. One of them is what-so-called know- ledge sharing. This is because if someone has more knowledge about his job, and knowledge beyond, while he can manage his knowledge well, so it is possibly to affect his performance.
By implementing knowledge sharing in an orga- nization, it is expected that employees can add and manage their knowledge well so that it will lead to the improvement of their performance quality in their organization (Camelo-Ordaz et al., 2011; Elianto & Wulansari, 2016).
The study conducted by Du et al. (2007) which was conducted in Xian city, China con- cluded that knowledge sharing is the best way conducted by management in improving their enterprise performance because the implemen- tation of knowledge sharing in their enterprises would lead to positive effect on their enterpri- ses. One problem in sharia banking is the limit of qualified human resources, in order to raise sharia banking which is professional, good, and right. This phenomenon is shown by the service of sharia banking tends to have lacking of seve- ral Islamic aspects.
Another problem which often occurs is a huge number of sharia banking human resour- ces who don’t have proper knowledge and ex- perience in operating sharia banking. They are often found to be lack of giving accurate expla- nation as it is. So that it will lead to hesitation for customer candidate to use their product and services of sharia banking. Furthermore, care- less explanation leads to invalid assumption about sharia banking, so that it will affect sharia banking image.
Therefore, this study aims to analyze the effect of knowledge sharing in improving hu- man resource performance at one of the Sharia banks. Besides, this study also tries to examine the effect of organizational dimension including organizational learning culture and support from top management, and individual dimen- sion namely openness in communication, on knowledge sharing of human resource.
Hyphothesis Development Organizational Learning Culture
Organization Learning refers to all acti- vity of an organization in creating a using kno- wledge to improve organizational competitive advantage (Calcantone et al., 2002; Katou et al., 2014). Organization Learning means a process to improve better action through knowledge and understanding (Fiol & Lyles, 1985; Kang et al., 2008; Kuvaas et al., 2012). Among of the dimensions of Organization Learning are (1) commitment to learn, (2) open-mindedness, and (3) vision sharing. To support organizatio- nal learning culture, an organization must provi- de good trustful communication media.
Organization learning is something new which is sometimes still misunderstood only becoming efforts of training or developing orga- nizational ability and employees. In fact, orga- nizational learning brings a mission where lear- ning which is conducted is emphasized more on human essence or individuals to be aware of their potencies. Sustainable learning becomes the core of organizational learning. Besides, in one word, it must reflect from their selves. In another word, there is no instant learning which
can be applied to all parties. There are three indicators of organizational learning culture, namely: (1) reward of change and employees’
innovation, (2) support on knowledge sharing of employees, and (3) care with ideas and their new knowledge (Minbaeva, 2013; Yesil, 2013;
Putri & Yuniawan, 2016) Top Management Support
Every enterprise to achieve their goals, and in a measurement how far their successful which can be achieved, needs support from top management. The support according to Hash- mi (2004) is parties who are responsible for providing general guideline for employee ac- tivities in their organization. The level of their support can be one of the important factors in determining the success of all activity related to their employees’ work.
The support is parties who are respon- sible for providing guideline with commitment about time, cost, and source to support organi- zation activity. The indicators of Top Manage- ment Support in this study are: (1) emphasizing the importance of knowledge sharing, (2) Sup- porting kinds of knowledge, and (3) Attemp- ting to be consistent in encouraging knowledge sharing culture (Alfes et al., 2013; De Winne et al., 2013).
Openness in Communication
Communication is an interaction of con- tact among humans either individual or group.
Each individual in an organization needs to interact and communicate well, so that aimed purposes can be achieved effectively and effi- ciently. So, it is needed in every organization or individual to have openness in communication.
Opened communication will tighten harmonic relationship among individuals. Open minded is a kind of communication where we can ex- press information relating to ourselves that we usually hide. It is considered as an important tool for someone’s life. Without its existence, so humans will get obstacles in communication.
With it, individual’s intimacy to another can be closer. Then, the indicators in this study are:
(1) Willingness to have discussion about works, (2) Willingness to share important informati- on, and (3) Openness in communication (Liu
& Liu, 2011; Yesil, 2013; Farida, 2016).
Knowledge Sharing
Lumbantobing (2011) stated that know- ledge sharing is a systemic process in sending, distributing, and disseminating knowledge and multidimensional context among individuals or organizations through various methods or me- dia. Knowledge sharing is a step for spreading/
disseminating knowledge so that it could be ac- cessed for employees who need it. Lin (2007) and Kuvaas et al. (2012) stated that knowledge sharing can create a chance to improve organi- zational ability in order to fulfill the need and help to be a solution and efficiency so that com- petitiveness will be created. Most of knowledge is embedded on humans, and this becomes one of invisible resources (intangible asset) for an organization. Knowledge, whether is shared or not, depends on individuals.
Lin (2007) stated that an enterprise can be successful in promoting knowledge sharing culture not only by directly connect knowledge management to their strategic business, but also by changing employees’ attitudes and habits to promote desire and consistency of knowledge sharing implementation. Therefore, factors of individual and organization become enabler in the activity of knowledge sharing. Individual is an object and also subject for sharing knowledge, while organization takes role as a supporter to create environment and culture which can af- fect the implementation of knowledge sharing.
The indicators of knowledge sharing in this stu- dy are: (1) sharing information about works, (2) sharing new knowledge, (3) caring to col- leagues, (4) sharing stories about works (Yesil, 2013; Pervaiz et al., 2016)
The studied of Tsai & Ghoshal (1998) found that Learning Culture in an organization can promote knowledge sharing among mem- bers in organization who believe that learning by sharing knowledge will improve performance (Putri & Yuniawan, 2016). Afterwards, a support
from top management is really important in the development of knowledge sharing, such as at- tracting participation from employees to start and spreading important knowledge about works (O’Dell & Grayson, 1998; Pervaiz et al., 2016).
Marquardt (1994), Szulanski (1996) and Chiang et al. (2011) pointed out that opened intimate communication is an important an- tecedent of knowledge sharing. Mainly, Mar- quardt (1994) and Liu and Liu (2011) stated that openness in communication has positive effect on knowledge sharing, with a reason that skepticism in communication takes role as a main obstacle in building learning culture.
H1: Organization Learning Culture has signi- ficant effect on Knowledge Sharing.
H2: Top Management Support has significant effect on Knowledge Sharing.
H3: Openness In Communication has signifi- cant effect on Knowledge Sharing.
Knowledge Sharing and Work Performance Human resource performance is an ex- pression such as output in the form of efficien- cy and effectiveness which are always related to productivity. The result of work (quality and quantity) which has been achieved by someo- ne in conducting tasks and responsibility that have been occupied to an employee (Alfes et al., 2013). While according to Den Hartog et al., (2013), it is a description of achievement level on implementing a program of activity or policy in creating target, purpose, vision and mission, and organization which is expressed through strategic plan of an organization.
According to Prieto & Pérez-Santana (2014), they stated that there are six criteria which can be used to measure how far employee performance will be. While the indicators used in this study are: (1) work quality, (2) work quantity, (3) knowledge on work, (4) personal quality, and (5) cooperation.
The study of Du et al. (2007) which was conducted in Xian city, China concluded that knowledge sharing is the best way conducted by management in improving their enterprise per- formance because the implementation of know-
ledge sharing in their enterprises would lead to positive effect on their enterprises. Based on the previous studies, it is found that there is signifi- cant effect of the implementation of knowledge sharing on performance. One of the studies was conducted by Saraswati (2010), who stated that in her study at PT (Limited Company) Pembang- kitan Jawa Bali, especially Gresik generator unit found that there was a significant effect of know- ledge sharing enabler on employee performance.
H4: Knowledge Sharing has significant effect on Work Performance.
Acording to the hypothesis development as described above then can be formulated the empirical research model as in Figure 1
Figure 1. Empirical Model METHOD
This study is explanatory research which tries to determine the correlation among va- riables of this study. This study is categorized into causal correlation among variables through hypotheses testing. The source of the data was from respondents and literatures/ books/ jour- nals. The data of this study were primary and secondary. The data collection was conducted through questionnaire.
The population in this study was the emp- loyees, especially front-liners marketing divisi- on at Sharia Bank in Semarang. The study was conducted through survey by distributing the questionnaire to 66 employees as respondents at one of Sharia Banks. To determine the num- ber of sample, this study used Slovin formula by employing proportional random sampling technique.
RESULT AND DISCUSSION
It distributed 145 questionnaires, and all of them were returned, so that there were con- sistently 145 questionnaires or 100%.
The Result of Outer Model
Based on the convergent validity test, it can be found that Convergent Validity from the indicators of Organizational Learning Culture, Top Management Support, Openness in Com- munication, Knowledge Sharing, and Work Performance have outer loading score > 0.5 the- refore, all of them are valid.
Then, based on the result of SmartPLS output, all of the constructs have composite re- liability score more than 0.7. So that it can be concluded that all of the variables in this study
are reliable. Table 2 is the table of composite re- liability score:
Table 2. Composite Reliability
Composite Reliability Organizational Learning
Culture 0.906
Top Management Support XXXX739 Openness in Communication 0.784
Knowledge Sharing 0.864
Work Performance 0.967
The Result of Inner Model
Scoring inner model was done by consi- dering the correlation among latent constructs through knowing the estimation result of the Table 1. Convergent Validity of Research Variables
Original Sample
Estimate Mean of
Subsamples Standard
Deviation T-Statistic Organizational Learning
Culture
X1.1 0.928 0.937 0.022 42.242
X1.2 0.908 0.907 0.036 25.225
X1.3 0.778 0.799 0.049 15.819
Top Management Support
X2.1 0.822 0.829 0.044 18.680
X2.2 0.673 0.629 0.127 5.284
X2.3 0.585 0.606 0.166 3.523
Openness in Communication
X3.2 0.626 0.577 0.164 3.822
X3.3 0.958 0.960 0.021 46.094
Knowledge Sharing
Y1.1 0.816 0.817 0.042 19.442
Y1.2 0.837 0.826 0.054 15.518
Y1.3 0.848 0.842 0.044 19.067
Y1.4 0.619 0.578 0.121 5.097
Work Performance
Y2.1 0.680 0.713 0.083 8.145
Y2.2 0.975 0.952 0.013 76.690
Y2.3 0.980 0.967 0.008 115.682
Y2.4 0.976 0.961 0.012 81.857
Y2.5 0.979 0.971 0.010 96.396
coefficient of path parameter and its significant level (Ghozali, 2013). The basis used in testing the hypotheses is the score on the output result of inner weight as can be seen on Table 3.
Organizational Learning Culture has sig- nificant effect on Knowledge Sharing. This is proven from the coefficient parameter value’s 0.617 and the significant of t-statistic was 4.281
> t-table 1.977. Therefore, the hypothesis 1 which states that Organizational Learning Cul- ture has significant effect on Knowledge is Ac- cepted.
Top Management Support has significant effect on Knowledge Sharing. This is proven from the parameter coefficient value’s 0.411 and the significant value of t-statistic was 3.738 > t- table 1.977. Therefore, the hypothesis 2 which states that Top Management Support has signi- ficant effect on Knowledge is Accepted.
Openness in Communication has negati- ve effect on Knowledge Sharing. This is proven from the parameter coefficient value’s -0.039 and the significant value of t-statistic was 0.403
< t-table 1.977. Therefore, the hypothesis 3 which states that Openness in Communication has significant effect on Knowledge Sharing is Rejected.
Knowledge Sharing has significant effect on Work Performance. This is proven from the parameter coefficient value’s 0.727 and the sig- nificant value of t-statistic was 10.122 > t-table 1.977. Therefore, the hypothesis 4 which states that Knowledge Sharing has significant effect on Work Performance is Accepted.
Table 4. R-Square
R-square Organizational Learning
Culture 0.000
Top Management Support 0.000 Openness in Communication 0.000 Knowledge Sharing 0.924
Work Performance 0.528
Table 4 shows that R Square score for Knowledge Sharing is 0.924. This means that Organizational Learning Culture, Top Manage- ment Support, and Openness in Communicati- on can determine Knowledge Sharing as much as 92.4%, while the rest was determined by ot- her variables. Then, R Square score for Work Performance is 0.528. It means that Knowledge Sharing can determine Work Performance as much as 52.8% while the rest was determined by other variables.
Organizational Learning Culture has sig- nificant effect on Knowledge Sharing. This fin- ding rejects two findings of previous studies con- ducted by Kang et al. (2008) where the findings found that Organizational Learning Culture had no significant effect on the improvement of human resource’s knowledge sharing. Reward on change and innovation conducted by sharia bank to their employees makes them get moti- vated in accomplishing their work. The change which happens in work is so dynamic, including industrial banking one of which is sharia bank.
Therefore, human resources in it must have a Table 3. The Result of Inner Weight
Original Sample
Estimate Mean of
Subsamples Standard
Deviation T-Statistic Organizational Learning Culture
-> Knowledge Sharing 0.617 0.607 0.144 4.281
Top Management Support ->
Knowledge Sharing 0.411 0.445 0.110 3.738
Openness in Communication ->
Knowledge Sharing -0.039 -0.067 0.097 0.403
Knowledge Sharing -> Work
Performance 0.727 0.739 0.072 10.122
change following the dynamic change so that they will not be lose in competing with other banks. Afterwards, the finding also found that sharia bank gives support on knowledge sharing conducted by their employees such as through giving hard skill training about product know- ledge sustainably, and periodically conducting discussion on problem faced in the field, and gi- ving soft skill provision to their employees.
Besides, ideas and new knowledge propo- sed by the employees aslo must be appreciated by the organization, one of them is through giving praise. The praise is one of motivations given by the organization in order to be consis- tently creative to stimulate ideas, new suggesti- ons, as well as consistently improve knowledge and conduct knowledge sharing.
Top Management Support has signifi- cant effect on Knowledge Sharing. This finding is in line with the study which was conducted by Kang et al. (2008) which resulted that sup- port from top management has positive effect on human resource’s knowledge sharing. Many things can be done by organization, especially sharia bank as concerned in this study, in or- der to create their human resource’s knowled- ge sharing. Among those is that it can be done by emphasizing the importance of knowledge sharing either for internal unit or inter unit of work, giving support on knowledge sharing, and trying to be consistent in developing knowledge sharing culture among human resources in or- ganization.
Openness in Communication has nega- tive effect on Knowledge Sharing. This finding rejects the study which was conducted by Kang et al. (2008) and Kuvaas et al. (2012) which found the opposite finding that Openness in Communication has positive and significant ef- fect on Knowledge Sharing. So, in this case, in- dividual factor becomes a problem in improving knowledge sharing in organization. This means that the organizational dimension or the parties of organization has supported in order that kno- wledge sharing can be improved and developed, but the human resources are lack to support.
This finding also supports the phenomenon that still many human resources of sharia bank
who have no good knowledge and experience in running the operational of sharia bank.
In fact, one of the factors is due to the hu- man resources themselves. The human resour- ces in organization of sharia bank can be said to have no openness in communication. Among them are having discussion about works, lack of willingness to share important information, and openness in communication. Meanwhile, banking enterprises is a service business where the output is service to their customer, and it needs cooperation among teams of divisions in that bank. Important and updated information should be able to shared one to each other so that all organization’s human resources can ser- vice their customer well.
Knowledge Sharing has significant effect on Work Performance. This finding is in line with the study which was conducted by Kang et al. (2008) who both stated that knowledge sharing has significant effect on the improve- ment of human resources in an organization.
After being affected by several factors which can improve human resources’ knowledge sharing HR, which is in this study includes organizatio- nal dimension namely Organizational Learning Culture and Top Management Support, hu- man resources’ knowledge sharing HR at sharia bank is proven to be able to improve the human resource performance in an organization.
So, the attempt or activity conducted by the human resources such as sharing information about works, sharing new knowledge, caring to colleague, and sharing story about works, finally can improve: 1) performance quality of human resources at sharia bank, such as in terms of gi- ving service to customers and solving problems about works. 2) Work quantity, target is a result which must be achieved by human resources employed in bank; the same is true at sharia bank.
By knowledge on work owned by sharia bank’s human resources, in fact, makes them try to solve tasks according to the target given.
3) Knowledge on work, with the know- ledge owned by sharia bank’s human resources, they feel to have more knowledge needed to sol- ve problem in their work, for instance, a prob- lem which appears because of complaint from
customers, and sometimes conflict with collea- gues. With the knowledge, the human resources can also give more Islamic service to their cus- tomers and can give explanation correctly and accurately. So that it will not lead to hesitation for customer candidates to use the product and service of sharia bank.
4) Personal quality, knowledge on work owned by the human resources of sharia bank makes them have new innovation, better attitu- des, and improve their competence needed in the competition of banking industries which is getting tighter. 5) Cooperation, knowledge on work owned by the human resources of sharia bank makes them can give support to their collea- gues in doing their works, solving problem about works, trying to avoid conflict with their collea- gues, and can cooperate with their team, either the team of their unit or the team of other units.
CONCLUSION AND RECOMMENDATION The improvement of human resource performance at sharia bank can be enhanced through the improvement of knowledge sha- ring, where the improvement of knowledge sha- ring has been affected by organizational dimen- sion among which are Organizational Learning Culture and Top Management Support. There- fore, the stronger Organizational Learning Cul- ture and Top Management Support conducted by sharia bank, the higher support of knowledge sharing role in improving the performance. Be- sides, individual dimension namely openness in communication can not determine the impro- vement of knowledge sharing.
This study is limited only to a sharia bank.
It is better to conduct it at several sharia banks.
Then, the result of testing using Partial Least Square (PLS) method, showed that R-square score for knowledge sharing was 0.924 or could predict the model reaching 92.4% while the rest (7.6%) was caused by other variables outside this model, this shows that there are still other variables outside this study which affects it, so that, it still needs other relevant variables.
Further studies are suggested to cover some of these followings: (1) a study which is
not only limited to three banks, but all of sha- ria banks in Semarang, (2) additional variables either from organizational dimension or from individual which can also affect the improve- ment of knowledge sharing such as organiza- tional structure, employee training, and reward systems for organizational dimension. Then, cooperative relationship is for individual di- mension. Furthermore, it can insert other di- mensions which are possible to improve know- ledge sharing such as clarity of knowledge and usefulness of knowledge.
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